Importing Workfare: Policy Transfer of Social and Labour Market Policies from the USA to Britain under New Labour

Britain's New Labour government has put welfare reform at the top of its political agenda. It has followed a radical “workfare” agenda in relation to labour and social market policies and no longer aims to secure full employment mainly through direct job creation or Keynesian demand management. Instead, it promotes equal opportunity for all based on a contract between benefits claimants and the employment service. The New Deal is at the heart of British activation programmes for the unemployed. American policy paradigms have influenced the design of the New Deal. Policy transfer in activation policies from the USA to Britain is due to institutional similarities in British and American welfare states on the one hand, and to the comparable structure of their labour markets on the other hand. The influence of the European social model on British labour market policies thus remains limited.     

The Workfare Illusion: Re-examining the Concept and the British Case

This article contends that workfare programmes pursued by various OECD countries since the mid‐1990s do not amount to a fundamental change in policy. The limited potential of workfare is due to the fact that it fails to transcend the constraints of earlier forms of ‘active’ responses to unemployment. Furthermore, it suffers from specific policy‐making disadvantages not shared by these responses. The article opens with a survey of relevant academic debates on the subject. It then places workfare in a broader context by identifying its functional reach, as compared to other active policy responses to unemployment such as active labour market policy (ALMP). The third section analyses workfare policies in the United Kingdom, as developed since 1997, by re‐examining the British New Deal employment programme. That review demonstrates that workfare policies either depend on their ‘fit’ with the existing policy‐making heritage, or that they remain merely symbolic. The article concludes by suggesting that the potential of workfare to effect change in responses to unemployment continues to be of limited significance. In other words, capitalist employment and welfare systems continue to be characterized by incremental adaptation rather than by fundamental regime change as suggested by the critics of workfare.     

The "Employment-first" Welfare State: Lessons from the New Deal for Young People

New Labour is constructing an “employment‐first” welfare state. It plans through Jobcentre Plus to transform the passive culture of the benefit system by creating more explicit links between individual behaviour and engagement with labour market programmes. The New Deal for Young People (NDYP) has been at the forefront of these changes. This paper reports on the findings from four case studies that explored how the NDYP has changed young people's experience of the welfare state. It establishes that NDYP offers a mixture of employment assistance and “pressure” and has made progress in developing front‐line services and helping young long‐term unemployed people into work. NDYP does not, however, work for all. In areas of high unemployment and for some disadvantaged groups intermediate labour markets could enhance the New Deal and make real the offer of “employment opportunities for all”.     

Expediting youth's entry into employment whilst overlooking precariousness: Flexi‐employability and disciplinary activation in Hong Kong

With an emphasis placed on supply‐side interventions such as skills training and incentives enhancement, active labor market polices (ALMPs) are strongly promoted by international organizations and widely adopted across different welfare regimes to boost employment rates. This article first presents the under‐examined relationship between ALMPs and employment precariousness, which has posed a challenge to the neoliberal notion of employability and activation. Youth‐focused employment policies tend to speed up employment entry whilst downplaying the risk of precariousness and the importance of job quality, and thus further reinforcing the belief that engaging in precarious employment is tolerable if not inevitable. The article then examines the case of Hong Kong, which illustrates that its relatively low rate of youth unemployment may conceal the unfavorable employment conditions confronted by youth. It is argued that the service‐led employment policies and short‐term vocational training define the employability of young workers in terms of labor flexibilities. The coined phase of “flexi‐employability” is characterized by promoting youth's readiness for, and adaptability to, the volatilities and changing demands of the labor market. Arguably, the disciplinary approach to youth activation would only strengthen the work‐first principle by enforcing young people to take up jobs available and leave welfare as soon as possible, but without thoroughly addressing the risks and insecurities generated by the labor market in undermining their well‐being.     

Welfare program participation among rural‐to‐urban migrant workers in China

Xu Q, Guan X, Yao F. Welfare program participation among rural‐to‐urban migrant workers in China Int J Soc Welfare 2011: 20: 10–21 © 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. An estimated 225 million Chinese people have migrated to cities from China's rural areas over the past two decades. These rural‐to‐urban migrant workers have greatly challenged China's welfare system. The pre‐reform welfare system was a duel scheme with an urban–rural distinction in which rural residents were not covered by state‐run welfare programs and had to rely on their families and rural collectives. The development of employment‐based social insurance programs in 1999 made social welfare programs available for rural‐to‐urban migrant workers. Using an anonymous survey conducted in seven cities across China in 2006, we found that social insurance program participation rates were low among rural‐to‐urban migrant workers. Individual factors, including lack of knowledge of welfare programs and of a willingness to participate, and macro‐level factors, including type of employer and industry, are critical in determining migrant workers' participation in welfare programs. Implications for policies and practice are discussed.     

Foundations of the Workfare State – Reflections on the Political Transformation of the Welfare State in Britain

The British ‘welfare state’ has been transformed. ‘Welfare’ has been replaced by a new ‘workfare’ regime (the ‘Work Programme’) defined by tougher state regulatory practices for those receiving out‐of‐work benefits. US‐style mandatory community work programmes are being revived and expanded. This article, therefore, considers shifting public attitudes to work and welfare in Britain and changing attitudes to working‐age welfare and out‐of‐work benefits in particular. It also considers the extent to which recent transformations of the state may be explained by declines in traditional labourist politics and class‐based solidarity. Thus, we attempt to develop a richer understanding of changing public attitudes towards welfare and the punitive regulatory ‘workfare’ practices engaged by the modern state in the liberal market economy; reflecting on the nature of the relations between ideology, party policies, popular attitudes and their political impact.     

When Is a Change Big Enough to Be a System Shift? Small System‐shifting Changes in German and Finnish Pension Policies

In the wake of Esping‐Andersen's and Pierson's landmark publications, comparative welfare state research has revolved around the retrenchment of social policy and the transformation of welfare state regimes. One of the chief problems of these studies is the treatment of time. Very often, changes are incremental and their real impacts are not immediately visible but take years or even decades before the consequences fully materialize. The purpose of this paper is to discuss those incremental processes—that consist of series of smaller “not‐system‐shifting changes”—which may gradually change central features of a welfare state. Pension programmes, spanning long time periods, provide a good example. Only in some rare cases were pension schemes reformed in one step and in such a way that one can definitely ascertain a system shift. Most changes, however, are gradual, and recurrently enacted minor adjustments seem to leave the basic principles of the scheme intact. In this paper pension reform policies in Germany and Finland will be used to answer the question of when a change is big enough to be labelled as a system shift. It is argued that small “not‐system‐shifting” changes of the last two decades will eventually alter the basic characteristics of old‐age security in both countries.     

From State Security Model to Selective + Residual Security Model: Health care regime shift in urban China

Based on the study of welfare states, welfare regime theory (WRT) has been widely applied to international and regional welfare regimes and to specific‐policy comparative studies. However, the health care system has often been neglected in this area of study. The current study promotes a health care regime approach that is influenced by WRT and incorporates analysis of the level of health care de‐commodification and health equity. Three types of health care regimes were identified in the development of the health care system in urban China: the State Medical Security Model, the Selective Medical Security Model and the Selective + Residual Medical Security Model. This approach provides useful policy implications for the health care reform currently taking place in China. In addition, this analysis contributes to theories in the comparative health policy literature.     

The performance of the Australian welfare system in a time of neoliberal economic reform

“Neoliberalism”, both as a body of theory and as a set of policies and practices, is commonly seen as unsympathetic, even antagonistic, to the welfare state. In the period from the mid‐1980s to the global financial crisis of 2007–08, Australia underwent very considerable “neoliberal” economic policy reform. What happened to the Australian welfare system and to Australia's socioeconomic egalitarianism in this period? To shed light on that question three kinds of trend are tracked. The first is household taxes and social expenditure in both cash and kind, using fiscal incidence analysis where the main metric is “net benefits”. The second is economic inequality, as measured by the distribution of incomes and wealth. The third is the performance of the labor market, as measured by earned incomes and unemployment rates. The article concludes with an attempt to integrate the evidence collected from these three sources. The general conclusion is that the Australian welfare system did not follow the pessimists' predictions. The welfare system grew in size and redistributive quantum. Wage levels rose strongly, while unemployment rates fell. Overall, income inequality increased to a small extent, though mainly before the full economic reform process was in place, while wealth inequality changed little.     

Welfare regime change – or lack of change – in unemployment compensation

Drawing on theoretical accounts of institutional change, this study explored the politics of welfare regime transformation in regard to Turkey's unemployment compensation system. By using the institutionalist approach, the study shows that the process of welfare regime change was one of “institutional layering” of unemployment insurance (UI) over severance pay. Also, the study demonstrates that the economic bureaucracy played a key role in pushing the establishment of UI (state‐centric approach) in contrast to the class‐based organizations that focused their struggles on the severance pay scheme (power‐resource perspective). However, the economic bureaucracy preferred a rudimentary UI design, which prevented UI from undermining the vested interests behind the severance pay scheme. Furthermore, subsequent attempts at the reformation of the severance pay scheme were not successful because the social welfare bureaucracy lacked the capacity to develop a policy alternative to resolve the stalemate between the societal actors. Lastly, the study used the successful severance pay reform experiences of South Korea and Austria to locate the Turkish case within a broader comparative framework.     

Public opinion towards workfare policies in Europe: Polarisation of attitudes in times of austerity?

Increasing wage inequality, strong labour market divides and welfare retrenchment are widely believed to result in more polarised public opinion towards the welfare state. The present study examined if attitudes towards workfare policies have become more polarised in Europe over recent decades. To achieve this aim, the study analysed public opinion data from the European Value Study (EVS) from 23 European countries in the years 1990–2008, using multi‐level regression analysis. It is found that individuals who are most affected by workfare – the unemployed, the poor and the young – most strongly oppose workfare concepts. Against expectations, there was no evidence of an increasing polarisation of attitudes in Europe. Attitudinal cleavages based on employment status, income and education have remained stable. Differences between age groups have even dissolved because younger cohorts increasingly favour strict workfare policies. The results suggest that warnings of increasing social conflicts and an erosion of solidarity in European societies are exaggerated.     

The digital economy and the future of European welfare states

As a consequence of new technology, labour markets are changing. This article’s central aim is to discuss variations among welfare states in Europe to adjust to changing labour markets. These variations in adjustment suggest that some welfare states are more prepared than others, including their capacity to ensure their sustainable financing. In the years to come, the predicted impact of technological development on labour markets will be huge. Impacts will include stronger “dualization” and new cleavages between “insiders” and “outsiders”. Fewer industrial jobs are to be expected, and service‐sector employment faces a risk of decline due to automation. While the creation of new jobs is likely, it remains to be seen whether these will replace the number of jobs destroyed, leaving the risk that many people whose skills become obsolete will become unemployed in the short as well as the longer term. Furthermore, even if the same number of jobs are eventually created, there will be a period of transition. In the light of this, welfare states will be challenged, not only in how they can finance their activities but also in terms of the threat posed to social cohesion by emerging labour market “winners” and “losers”, with an accompanying higher risk of increasing inequality. The article offers suggestions as to how welfare states may cope with the changes related to the financing of welfare states, and how active labour market policy can be part of the response to help alleviate the expected dramatic changes. Also required is a discussion on the annual average number of hours people will work and how this might be a factor in lower future levels of unemployment.     

Work and welfare‐state trajectories in Norway over two decades: Has the goal of getting more people into work been achieved?

In this study, we investigated the work and welfare‐state trajectories of three cohorts of middle‐aged Norwegian inhabitants over a period of two decades (1994–2014). The period of this study is particularly interesting because of an extensive welfare reform that was initiated in 2006 and completed in 2011. We addressed two questions: What were the most typical labour market and welfare‐state trajectories for middle‐aged people over the past two decades, and have they changed? Second, did the work and welfare‐state trajectories of a major target group of the NAV reform – adults with a high risk of health‐related exclusion – change during our observation period? Over the period, we witnessed a sharp drop in the number of people in stable employment. Furthermore, rather than solving the problem of permanent health‐related exclusion from the labour market, policy changes have created a new problem by steering people into temporary and less secure income sources from the welfare state.     

Social Policymaking and Its Institutional Basis: Transition of The Chinese Social Security System

This article discusses Chinese social policy development in response to the growth of the market economy. It provides a general overview of the system's evolution in three stages: (1) the pre‐reform period when a system of enterprise welfare was in operation; (2) a period of system transition; (3) the stage when state welfare began to take shape. These developmental trends are interpreted on the basis of three types of institutional relations: the State‐enterprise relation, the enterprise‐ (or employer‐) employee relation, and the individual/worker‐State relation. Moreover, the discussion deals with policy perceptions at each stage of the developmental process. Based on these analyses, it illustrates the transformation of the Chinese social security system in a broad socioeconomic and political context, where China struggled to establish a modern, market‐based enterprise system. The paper thus expounds issues of socialism, market forces and the power of organized labour.     

A fistful of euros: Is the German one‐euro job workfare scheme effective for participants?

Hohmeyer K, Wolff J. A fistful of euros: is the German one‐euro job workfare scheme effective for participants? Welfare reforms have constituted a major policy issue in many OECD countries in recent decades. In Germany, a major reform in 2005 emphasised the activation of welfare recipients and introduced a workfare programme –‘One‐Euro Jobs’– on a large scale. In the present study, the impact of one‐euro jobs on the employment prospects of different groups of participants was estimated. The analysis was conducted on a large sample of welfare recipients using propensity score matching. The sample of one‐euro job participants and other welfare recipients was drawn from administrative records comprising all those who started their participation in the programme in early 2005. Our results showed that participation slightly improved the medium‐term employment prospects for women but not for men. Participation reduced the employment rate of participants younger than 25 years but raised it for some of the older participant groups. In conclusion, one‐euro jobs are effective for participants who have been jobless for several years but ineffective for participants who were recently employed.     

Hong Kong: workfare in the world's freest economy

Chan CK. Hong Kong: workfare in the world's freest economy Int J Soc Welfare 2011: 20: 22–32 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. Workfare was introduced in many countries to suppress welfare dependency and reduce social security expenditures. However, workfare was launched in Hong Kong when there was only a relatively small social security budget and its citizens still strongly adhered to the ideologies of self‐reliance. It was found that workfare has performed several functions in Hong Kong. First, by forcing unemployed claimants to give up benefits, Hong Kong has been able to save on social security expenditures. Second, workfare has combined with Hong Kong's semi‐democratic polity so that extremely stigmatising welfare measures have been implemented. Third, it has pushed poor citizens into the labour market without having any protection over wages and working hours. Thus, the combination of workfare and a semi‐democratic polity has successfully suppressed Hong Kong's welfare demands and strengthened its self‐help spirit. As a result, Hong Kong's minimal social security scheme and its low tax policy have been maintained.     

Workfare under Ontario Works: Making Sense of Jobless Work

Ontario Works is a provincial income assistance programme of last resort, operating under a workfare policy structure. Based on interviews with clients and staff (case managers, supervisors, managers and administrators), as well as an examination of policy directives, this article explores the work of workfare including claims making, training and resocialization, and employment internships. This article asks particularly how the work of workfare and the complex and costly workfare infrastructure is justified in the face of its failure to lead to employment. Findings include a contrast between the official story of an employment‐focused programme and workers' reports of spending far more time on eligibility than employment readiness. In addition, applying Gramsci's notion of ‘common sense’, an argument is developed that the normative justification for workfare is based not on the effectiveness of workfare programmes, but on the belief that clients need to exchange their work for welfare and self‐improvement so that they appear ‘employment ready’ even if not employed.     

Impacts of off‐farm employment on welfare,food security and poverty: Evidence from rural Vietnam

How off‐farm employment can enhance welfare in terms of food consumption and poverty alleviation is a critical question facing many developing countries. This study addressed that question by pursuing two objectives: (i) to quantify the impact of off‐farm employment on rural households’ welfare, food security and poverty; and (ii) to examine the factors that affect their decision to work off‐farm. Using panel data, we estimated a difference‐in‐difference combined with a propensity score matching model. The findings show that off‐farm employment improves income, ensures food security and contributes to poverty alleviation. The results also show that age, marital status, education, labour, financial capital, land, location, market access and losses from natural disasters are significant contributing factors to the decision to participate in off‐farm employment. The findings suggest that to improve the welfare of rural households, the Vietnamese government should proceed with policies that enhance their opportunities for participation in off‐farm employment.     

Healthcare decommodification in decentralization context: Reviewing the ideational constructions of “classless hospital policy” initiatives in Kulon Progo Regency,Indonesia

This article illustrates the emergence of radical local welfare initiatives as a political response to the imperfect national program in decentralization context in Indonesia. In order to gain further understanding of the topic, it is worth reviewing Kulon Progo Regency's experience which recently embarked on removing class stratification at any in‐patient room in all local government‐owned hospitals through “classless hospital policy” initiatives. Using exploratory case study method, this article aims to review the ideational constructions of healthcare decommodification that is displayed on this initiative. It is concluded that the classless hospital policy reflects how social citizenship was organized through the mechanism of idea contestation which originated in the past community's behavior, combined with the vested interest of political regime for then subduing market logics under state power. This circumstance ultimately has provided the groundwork for encouraging innovative welfare outcome.     

The Choice Revolution: Privatization of Swedish Welfare Services in the 1990s

During the 1990s, the Swedish welfare state was declared by some to be in a “crisis”, due to both financial strain and loss of political support. Others have argued that the spending cuts and reforms undertaken during this period did slow down the previous increase in social spending, but left the system basically intact. The main argument put forward in this article is that the Swedish welfare state has been and is still undergoing a transforming process whereby it risks losing one of its main characteristics, namely the belief in and institutional support for social egalitarianism. During the 1990s, the public welfare service sector opened up to competing private actors. As a result, the share of private provision grew, both within the health‐care and primary education systems as well as within social service provision. This resulted in a socially segregating dynamic, prompted by the introduction of “consumer choice”. As will be shown in the article, the gradual privatization and market‐orientation of the welfare services undermine previous Swedish notions of a “people's home”, where uniform, high‐quality services are provided by the state to all citizens, regardless of income, social background or cultural orientation.